Section 44ad for web development firm

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25 Points Joined October 2016
Hello there, I'm running a web development firm in Surat. I have a few questions regarding taxation. Can any one please tell me about them? 1. Can "Web Development - Software Solutions" be considered as a business? Or is it a professional? I'm running as a sole proprietor firm with a business name. 2. Can I use Section 44AD instead of Section 44ADA? Last financial year, I filled tax normally as a sole proprietor. Didn't used presumptive income scheme. Thanks in Advance
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On 18 October 2016 at 10:35 Report
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accounts and taxation practice
67 Points Joined June 2012

web proffession can no be taken in 44AD.

A person engaged in a profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD

A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD.

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On 18 October 2016 at 10:54
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25 Points Joined October 2016

Thank you for your prompt response, Deepak. Our firm is also developing software for companies. I'm not sure how it can be considered a profession when you have multiple people working for you for other companies. Can you please clarify the definition of profession? 

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On 18 October 2016 at 11:17
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accounts and taxation practice
67 Points Joined June 2012

 SUDHANSHU JI AS YOU ARE PROVIDING WEB SERVICES TO OTHER COMPNIES BASICALLY IT IS PROFESSION WORK AND PERSONS WHO ARE WORKING FOR IN YOU FIRM YOU CAN CLAIM EXPENSES FOR THAT.BUT IT WILL BE TREATED AS PROFESSION

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On 18 October 2016 at 17:13


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